In Chi-Square Analysis, the Greater the Number of Cells, the Larger

question 80

Multiple Choice

In chi-square analysis, the greater the number of cells, the larger the degrees of freedom. The greater the number of cells, the more opportunity exists to calculate a large chi-square value. In other words, the chi-square value can be "inflated" not due to a real association but simply due to the fact that there are more cells in the analysis. This is why degrees of freedom are used to:

• A) determine how many cells you should analyze.
• B) determine whether or not the computed chi-square value should be used for a post hoc test.
• C) determine whether or not the chi-square value has a probability high enough to support, or not support, the null hypothesis.
• D) lower the chi-square value in terms of its level of importance.
• E) calculate expected values.

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Definitions:

Commodity Swap

A financial agreement where two parties exchange cash flows related to a specific commodity's price.

Short-Term Price Movements

Fluctuations in the price of securities that occur within a brief period, often influenced by market sentiment and news.

Swap Contract

An agreement between two parties to exchange sequences of cash flows over a set period of time, generally used to exchange different types of interest rates or currencies.

Specified Cash Flows

Designated or particular cash movements into or out of a business or investment over a defined period.